What are the penalties for a late or wrong Form 1042-S, and am I off the hook if the foreign payee pays the tax themselves?
I think I may have missed withholding on a payment to a foreign payee last year. The payee told me they already reported the income and paid US tax on their own return, so I assumed that clears me. How bad are the Form 1042-S penalties, and does the payee paying the tax actually get me out of the personal liability, or am I still exposed?
Related Questions
When exactly does my foreign-owned US LLC become a 'withholding agent' that has to file Form 1042?
I run a US LLC and I keep seeing the phrase 'withholding agent' attached to Forms 1042 and 1042-S, but nobody explains the trigger in plain terms. I'm not a bank and I'm not a big company. Is this onl...
I already file Form 5472 with a pro forma 1120 every year — doesn't that cover any withholding reporting too?
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Do I withhold and issue Form 1042-S if my foreign contractor worked entirely outside the U.S. in 2026?
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A foreign partner is selling their interest to a new investor. Who actually handles the 10% withholding under section 1446(f)?
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After I withhold, when do I actually have to deposit the tax, and when are Form 1042 and 1042-S due?
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Can Form 8805 be required even if no Section 1446 tax was paid for that partner in 2026?
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The W-8 hasn't arrived yet but I need to pay my foreign payee now — should I just over-withhold at 30%?
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My US LLC (taxed as a corporation) pays royalties and interest to its foreign parent — do I withhold and file 1042-S?
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Stripe is under the LLC, PayPal is still under my personal name, and Wise gets payouts from both. How bad is that?
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